If the income elasticity of demand for a good is negative, the good is said to be a(n):
A) inferior good.
B) negative good.
C) positive good.
D) normal good.

Question

Quizplus · Accepted Answer

A negative income elasticity of demand indicates that as income increases, the demand for the good decreases. This is characteristic of inferior goods, which are goods for which consumers' demand decreases as their income increases.

If the Income Elasticity of Demand for a Good Is